How to Start a Rideshare Company in West Virginia: The $1,000 DMV TNC Permit

If you want to run a rideshare company in West Virginia, one requirement outranks everything else. A transportation network company (TNC) may not operate in the state without a permit from the West Virginia Division of Motor Vehicles (W. Va. Code 17-29-3). The annual permit fee is $1,000, and that amount is set in the statute itself. Your LLC, your insurance certificate and your written policies all exist to support that one application.

This guide covers the company that operates the app, in the order most people should complete the steps. If you plan to drive for an app that someone else operates, read the driver section near the end, because most of the paperwork then falls on a different party.

This article is informational content, not legal or tax advice. Rideshare regulation, insurance and tax treatment depend on your specific facts. Talk with a West Virginia business attorney, a CPA and a licensed insurance agent before you file anything.

What You Need Before You Start

Gather these items before you file. Several of them must exist before the DMV will review your application.

• A company name that meets West Virginia naming rules and is not already registered or reserved with the Secretary of State
• Articles of Organization (Form LLD-1) if you form an LLC, with the $100 filing fee, or Articles of Incorporation (Form CD-1) if you form a corporation
• A named agent for service of process in West Virginia, which the TNC permit requires even though the LLC filing treats an agent as optional
• A certificate of insurance that meets the limits in W. Va. Code 17-29-8
• A written zero-tolerance drug and alcohol policy (17-29-12)
• Written policies against street hails, against cash payments from riders, and a nondiscrimination policy
• An app that shows the driver's photo and the vehicle's plate number and sends an electronic receipt after each ride
• A plan for meeting the vehicle inspection rules in 17-29-14
• The $30 Business Registration Certificate fee from the State Tax Division
• A federal Employer Identification Number (EIN) from the IRS
• The $1,000 annual TNC permit fee

Step 1: Pick Your Business Structure and Check the Name

Your structure determines which filing comes first, how the business is taxed and who bears liability if something goes wrong. Most rideshare operators form a limited liability company because it separates personal and business liability. An LLC pays no West Virginia franchise tax and no corporation net income tax. Its members report their share of income on the personal income tax, which runs from 2.11% to 4.58% across five brackets for tax year 2026. A corporation pays the 6.5% corporation net income tax on federal taxable income, apportioned by a single sales factor.

A sole proprietorship needs no formation filing, but you give up the liability separation. If you operate under any name other than your own, you still need a trade name registration. Individuals and sole proprietors pay no filing fee for a DBA, but the Secretary of State files DBAs, not county clerks.

For an LLC, the name must contain “limited liability company,” “limited company,” or one of the abbreviations “L.L.C.,” “LLC,” “L.C.” or “LC” (WV Code 31B-1-105). “Limited” may be abbreviated “Ltd.” and “Company” may be abbreviated “Co.” The name must be distinguishable from every other name already registered or reserved. Search the business database at http://apps.sos.wv.gov/business/corporations/ before you file. If you need time to finish your paperwork, reserve the name for 120 days for $15 at https://sos.wv.gov/reserveregister-business-name.

Step 2: File Your Formation Documents

File the Articles of Organization (Form LLD-1) through the WV One Stop Business Portal at https://business4.wv.gov/, or through the Secretary of State’s business page at https://sos.wv.gov/business. The filing fee is $100, and online filings add a $1.00 portal processing fee. Standard processing takes 5 to 10 business days. Expedited options cost extra on top of the filing fee: $25 for in-person same day, $25 for next business day, $250 for a 2 hour filing and $500 for a 1 hour filing.

Decide on your registered agent now. Form LLD-1 asks for an agent’s name and address “if any,” and its instructions say you “may wish” to maintain one. The agent can be an individual resident, a corporation or another LLC. The Secretary of State is the statutory attorney-in-fact for every entity that files organizing documents, so it can always accept service for you. The TNC permit is stricter, though. It requires proof of an agent for service of process in West Virginia under 17-29-4. Ask the DMV whether it accepts the Secretary of State arrangement for that purpose, or whether it expects a named individual or company. Naming an agent at formation avoids a second filing later. Changing an agent is filed on Form AAO for $15.00.

Once formed, your LLC files an annual report with the Secretary of State every year. The report costs $25 and is filed between January 1 and June 30 of each year following the year you registered. Filings after June 30 cost $75 because a $50 late fee applies. Put June 30 on your calendar the day your LLC is approved.

Step 3: Get Your State Business Registration Certificate

West Virginia has no general statewide business license. The closest equivalent is the Business Registration Certificate from the State Tax Division. It costs $30, is a one-time fee, and can be filed on Form WV/BUS-APP or online at https://business4.wv.gov/. The certificate stays valid until your business name, location or ownership changes. Your Secretary of State filing does not replace it. Confirm with the Tax Division how the one-certificate-per-location rule applies to a business that has no storefront or office, since a rideshare company may operate entirely from a home address.

Get this certificate before you start operating. Think of it as the state’s basic registration to do business, separate from the formation filing and separate from the TNC permit.

Step 4: Check City and Local Requirements

West Virginia has 55 counties and 230 incorporated places, and local rules often matter more than people expect. Cities, not the state, levy the gross receipts business and occupation (B&O) tax that applies to most services. Many cities also require a city business license and charge a weekly per-worker city service fee. Fares your company collects can fall under a city’s gross receipts rules, so do not assume a city exempts rideshare income.

Contact the city clerk or finance office in each place you plan to operate. Ask three questions: whether a city business license applies to your company, whether the city’s B&O tax reaches your gross receipts, and whether the weekly service fee applies to any workers you classify as employees. Get the current rates in writing. This brief does not include city rates, so treat any number you find online as something to confirm with the city.

Step 5: Bind Insurance for Each Period of a Ride

West Virginia sets different insurance minimums depending on what the driver is doing, and the TNC carries the responsibility for each period under W. Va. Code 17-29-8. Your certificate of insurance must show the required coverage before you apply.

• Driver logged on, no ride accepted or in progress: at least $50,000 per person, $100,000 per incident and $25,000 for property damage, plus uninsured and underinsured coverage.
• During a prearranged ride: at least $1,000,000.
• Gap coverage: if a driver’s personal policy lapses, the TNC must cover the gap.

The main mistake here is assuming a driver’s personal auto policy will cover app work. Many personal policies exclude commercial or app-based driving. Use a licensed West Virginia insurance agent who writes TNC coverage, and ask in writing how each driver’s personal policy interacts with your company policy. Coverage cost depends on your drivers and vehicles, so get quotes rather than relying on a general figure.

Step 6: Write the Four Required Policies

The TNC permit application requires four written policies. Write each one as a standalone document, date it, and keep every version you adopt.

1. Zero-tolerance drug and alcohol policy. Required under 17-29-12. State clearly what the policy prohibits, how you test or enforce it, and what happens after a violation.
2. No street hails. Your app and your drivers may accept rides only through the platform, not from riders who flag a car on the street.
3. No cash payments from riders. Fares must be paid through the app.
4. Nondiscrimination. State that drivers and riders are treated without regard to protected characteristics, and explain how riders can report a concern.

Have your attorney review the policies. A policy that exists on paper but that your app and drivers do not follow creates problems at the next audit or complaint.

Step 7: Configure the App and Vehicle Rules

Your app must show each rider the driver’s photo and the vehicle’s plate number before pickup, and it must send an electronic receipt after each ride. Build those screens before you request the permit, because the DMV will expect to see how the product works, not just a description of it.

Vehicle rules apply as well. Drivers’ vehicles must pass the inspection rules in 17-29-14. Read that section in full and confirm with the DMV what a passing inspection requires, how often it must happen and who performs it, before you approve your first driver. Do not build an onboarding flow until those requirements are clear.

Step 8: File the TNC Permit With the DMV

Assemble the full package before you submit anything: proof of your West Virginia agent for service of process (17-29-4), your certificate of insurance, the four written policies and the $1,000 annual permit fee. Confirm with the Division of Motor Vehicles the current application form, the submission method, the processing time and whether it wants anything beyond this list. Do not launch rides in West Virginia until the permit is issued in your company’s name.

Expect to renew the permit every year. Calendar the renewal date as soon as the permit is issued, and budget the $1,000 fee alongside your June 30 annual report.

Step 9: Classify Your Drivers Correctly

Drivers working through a TNC are not common carriers or taxis, so they do not need a Public Service Commission certificate (17-29-2). That simplifies the regulatory picture, but it does not settle how you pay and manage drivers.

Under 17-29-11, drivers can be treated as independent contractors if the statutory conditions are met. If they are, the TNC is not required to carry workers’ compensation for them. If the conditions are not met, the answer changes. Have an attorney compare your driver agreement against the statute before you onboard anyone. Do not assume that calling someone a contractor makes them one.

Step 10: Set Up Taxes and Recurring Compliance

Build a compliance calendar before your first ride. At minimum, track these items:

• Your federal EIN and any federal payroll or information reporting that applies to your structure
• Personal income tax for LLC members at 2.11% to 4.58% for tax year 2026, or 6.5% corporation net income tax if you formed a corporation
• The annual report due June 30 each year, at $25 on time or $75 late
• The $30 Business Registration Certificate, which stays in force until something material changes
• City license and B&O obligations in every city you serve
• The $1,000 TNC permit renewal and the insurance certificate renewal

Keep mileage, fare, fee and expense records from the first day. Rideshare income is easy to underreport and hard to reconstruct, so use accounting software connected to your bank account and your payment processor.

If You Plan to Drive, Not Operate the Platform

Most people who search for a rideshare driver business in West Virginia want to drive, not run the company. The TNC permit belongs to the company that operates the platform, so you will not file the permit yourself. You still need to understand what you are agreeing to. Read the driver agreement for who carries insurance, what the TNC covers during each period, and how classification works under 17-29-11.

If you operate as a sole proprietor or LLC while driving, you still need your own Business Registration Certificate and any city license that applies to you. Confirm with the DMV whether individual drivers need anything of their own, and check whether your personal auto policy excludes app-based driving before you accept your first ride.

Common Mistakes to Avoid

• Treating the registered agent as optional for the DMV. The LLC filing allows you to skip one, but the TNC permit does not.
• Assuming the Secretary of State filing is your license. A formation filing is a filing. The $30 Business Registration Certificate is a separate requirement.
• Relying on a personal auto policy alone. Confirm in writing that your coverage applies during app work.
• Launching before the permit is issued. Operating without the permit is the most expensive mistake in this process.
• Writing the policies after the app is live. The DMV reviews what you submit, and your drivers need to follow the same rules.
• Using a name that is not distinguishable. A name too close to one already registered can be rejected or force a rename.
• Missing the June 30 annual report. A late filing costs $75 instead of $25.
• Filing a DBA with the county clerk. DBAs are filed with the Secretary of State.
• Ignoring city rules. A state permit does not replace a city license or city B&O obligations.

What Results to Expect

A well-prepared application may move through the state process without repeated corrections, and a company with its insurance, policies and app features already built may be able to start operating sooner after approval. Those outcomes are not guaranteed. Processing times, insurance placement and city requirements vary, and the most common cause of delay is a missing or mismatched document, not the state fee itself.

Treat the timeline as a range you control only in part. Filing the entity early, naming your agent at formation, and getting insurance quotes in parallel with the policy writing can shorten the path, but no one can promise a specific launch date.

When to Get Professional Help

Use a West Virginia business attorney to review your entity choice, your driver classification under 17-29-11 and your four written policies. A CPA can model LLC pass-through taxation against a corporation and advise on city B&O exposure. A licensed insurance agent who writes TNC coverage can confirm that your certificate matches the limits in 17-29-8 and explain gap coverage in plain terms.

Official Resources

• West Virginia Secretary of State, business information: https://sos.wv.gov/business
• WV One Stop Business Portal: https://business4.wv.gov/
• Business name search: http://apps.sos.wv.gov/business/corporations/
• Name reservation: https://sos.wv.gov/reserveregister-business-name
• West Virginia Tax Division: https://tax.wv.gov/
• West Virginia Small Business Development Center: https://wvsbdc.com/

Confirm the TNC permit application form, filing method and processing time directly with the West Virginia Division of Motor Vehicles before you submit.